FINANCE: Legal & General has agreed its first hotel loan, providing a £37.5m, 10-year facility to a private client.
LGIM Commercial Lending said the loan was secured against the Hilton London Heathrow Airport Terminal 5 hotel.
The deal follows the announcement this month that F&C Commercial Property Trust expects to enter into a new bi-lateral 10-year, £260m facility agreement with L&G.
L&G’s commercial loan book now totals more than £1bn, the firm having invested or committed a total of £1.08 billion over 12 deals.
Previous transactions include five loans to the social housing sector, two loans to the student accommodation sector and a loan to the care home market.
Steve Boyle, L&G real estate lending manager, said: “This is L&G’s first hotel lending transaction and offers a high-quality asset in an excellent location, run by an experienced operator.
“In 2014, we have lent in numerous sectors, including social housing, industrial, care homes and now hotels, and continue to strive to broaden our horizons in other sectors, as well as being keen to lend further in traditional commercial areas.”
Laura Mason, L&G Capital director of direct investments, said: “This investment demonstrates our continued commitment to move into direct investments in the UK using our internal capital sources to provide financing to many different sectors.”
